On 5th august 2024, japan’s nikkei 225 plummeted around 12%, marking its largest two-day decline ever, even surpassing the black monday crash of 1987. this sent shockwaves through global markets, causing widespread uncertainty across the global markets, including in crypto.&#x1f50d; why did it happen?yen: the ‘carry trade’ impact: the bank of japan had recently raised its policy rate to 0.25%, the highest in 16 years, causing more market turbulence. the ‘yen carry trade’ exacerbated the situation as investors shifted their money to currencies with better returns, putting extra pressure on the global financial system and increasing market instability.US recession warning signs: despite the US economy having added a robust 206,000 jobs in june, the unemployment rate had ticked up to 4.1%, suggesting potential economic slowdowns ahead. inflation and rising interest rates had started to show their effects.AI investment returns: AI investments aren’t meeting expectations, adding to market uncertainty. the big 7 stocks in nasdaq are also underperforming, increasing financial instability and investor worry.&#x1f310; impact on crypto markets: the fallout from these developments has led to a nearly 15% drop in global markets over the last month. panic selling has also affected the cryptocurrency market, with bitcoin dropping over 10% in 48 hours and ethereum falling by 8%. crypto etfs have been hit hard, mirroring broader market declines.&#x1f4c8; opportunities in the chaos: despite the recent challenges, downturns can present opportunities. research, consider buying the dip, and stay focused on long-term gains. historical trends show that markets do recover.&#x1f52e; looking forward: the ongoing US presidential race and potential new regulations under a democratic administration may add to the instability, impacting the crypto market further.our take: let’s navigate these tough times by staying informed, diversifying investments, and maintaining a long-term perspective.

Market Turbulence: What Exactly Happened?

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